Just Grace& B-BBEE

OUR APPROACH

Just Grace has a variety of ways in which a firm can obtain points towards its B-BBEE scorecard.

Many organisations believe that only Socio-economic Development points can be obtained by supportingNGOs/NPOs.

This is not correct - there are in a fact a number of ways in which an entity can achieve their B-BBEE pointsand contribute to an NGO/NPO at the same time.

We, therefore, encourage you to explore these opportunities and join us in our mission of uplifting the community of Langa.

Overview

We have included a broad overview of the opportunities.A more detailed overview of each element is then given in the annexures that follow.

Ownership

By giving Just Grace equity in your business, you will attract the 25 points (QSE) and 25 points (Generic)A QSE or EME which is at least 51% Black-owned qualifies for Level Two B-BBEE recognition level.A QSE or EME which is 100% Black-owned qualifies for Level 1 B-BBEE recognition level.

Skills Development

You are able to contribute financially towards:- Salaries and wages of interns at Just Grace- Informal training to be provided to your staff- Bursaries for deserving and academically gifted Just Grace learners25 Points are available (QSE) and 20 (Generic)

1) Full leviable amount can be granted to Just Grace to fund interns as part of their NQF-rated studies.

2) Full leviable amount can be granted to Just Grace to fund bursaries.

3) 15% of leviable amount can be granted to Just Grace for on-the-job training.

4 points

No. of black people in internships/apprenticeships/learnerships / total employees.

2.5% of total employees

No. of people funded per (1) above.

4 points

No. of unemployed black people in training / total employees.

2.5% of total employees

No. of unemployed people funded per above.

5 points

No. of black people absorbed.

100%

Explanation

Opportunity

Limit

Description

1 & 2

Skills Development Expenditure (no limit)

Includes bursaries as well as salaries and wages for internships (Category B, C and D).

3

Skills Development Expenditure (limited)

Informal G and F limited to 15% of total value of skills development expenditure.

3

Skills Development Expenditure (limited)

Training costs (accommodation etc) cannot exceed 15% of the total value of skills development expenditure.

Other Benefits

Employment Tax Incentive (ETI)

May claim R1 000 per young person employed against PAYE bill.

Must be 18-29 and paid between R2 000 – R6 000, and at least minimum wage.

Important Reminders:

1) Skills Development is a priority element and there is a sub-minimum to be achieved of 40% of the targets set out in the Revised BEE Scorecard. Should a company not achieve the sub-minimum target, its BEE status level will be discounted by one level down.

2) You must submit a Workplace Skills Plan, Annual Training Report and Pivotal Report which are SETA approved.

3) You must implement a priority skills programme generally, and more specifically for black people.

1) Full leviable amount can be granted to Just Grace to fund interns as part of their NQF-rated studies.

2) Full leviable amount can be granted to Just Grace to fund bursaries.

3) 15% of leviable amount can be granted to Just Grace for on-the-job training.

7 points

Skills development of black females as a % of the leviable amount.

1% of leviable payroll

4) Full leviable amount can be granted to Just Grace to fund interns as part of their NQF-rated studies.

5) Full leviable amount can be granted to Just Grace to fund bursaries.

6) 15% of leviable amount can be granted to Just Grace for on-the-job training.

5 points

No. of black people absorbed

100%

Explanation

Opportunity

Limit

Description

1 & 2

Skills Development Expenditure (no limit)

Includes bursaries as well as salaries and wages for internships (Category B, C and D).

3

Skills Development Expenditure (limited)

Informal G and F limited to 15% of total value of skills development expenditure.

3

Skills Development Expenditure (limited)

Training costs (accommodation etc) cannot exceed 15% of the total value of skills development expenditure.

Other Benefits

Employment Tax Incentive (ETI)

May claim R1 000 per young person employed against PAYE bill.

Must be 18-29 and paid between R2 000 – R6 000, and at least minimum wage.

Important Reminders:

1) There is a sub-minimum to be achieved of 40% of the targets set out in the Revised BEE Scorecard. Should a company not achieve the sub-minimum target, its BEE status level will be discounted by one level down.

2) You must submit a Workplace Skills Plan, Annual Training Report and Pivotal Report which are SETA approved (unless exempt from the 1% levy).

3) You must implement a priority skills programme generally, and more specifically for black people.

Enterprise and Supplier Development

Target: 1% of NPAT40 points are available (QSE) and 40 (Generic) To Just Grace NPC. You are able to provide funding for Just Grace Ventures to mentor black-owned business in Langa Township. This would be claimable as preferential procurement and enterprise development.To Just Grace (Pty) LtdYou are able to provide:- Goods and Services (IT services, professional or consulting services etc.)- Interest-Free loans- Equity to Just Grace- Grant contributions

Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target

1% of NPAT

Per clause 9.1.23 Enterprise and Supplier Development Contributions include

payments made by the Measured Entity to suitably qualified and experienced

third parties to perform Enterprise and Supplier Development on the Measured

Entity’s behalf.

This means that an entity may contribute towards Just Grace’s enterprise and supplier development programme (our Entrepreneurship and Small Business Support Hub) in order to achieve these points.

Per clause Annexe 400(B), the Benefit Factor Matrix, 100% of Grant Contributions may be claimed as an Enterprise and Supplier Development Contribution.

Partnership opportunities

Partnership opportunities

Just Grace is looking to start a (Pty) Ltd company that would be classified as an empowering supplier and a beneficiary entity.

This would allow entities to support Just Grace (Pty) Ltd through their B-BBEE ESD spend. This would provide much needed services to Just Grace NPC (transport, food, stationery) and at the same time uplift the beneficiary owners of Just Grace (Pty Ltd.

If you would like to explore this partnership, please contact us for more information.

Socio-Economic Development

Target: 1% of NPATContributions to Just Grace will be fully claimable as Just Grace has beneficiaries that are greater than 75% black.

We ask that you would contact us should you wish to explore the possibility of Just Grace forming part ofyour B-BBEE strategy. In this way, we can work together to see the most efficient and effective way for usto partner together in this regard.